Meijer 'a go'

GAYLORD — After two months, Bagley Township and the city of Gaylord have come to an agreement which will allow Meijer Inc. to enjoy city utilities extended to its future site west of town.

Following a public hearing Monday night, City Council approved the Public Act (PA) 425 agreement, which will allow for the extension of water and sewer along M-32 to the proposed Meijer site at the corner of M-32 and South Townline Road. Bagley Township did the same at their Aug. 11 meeting.

The agreement, to be signed on Sept. 19, will also grant Bagley Township a payment in lieu of taxes for 25 years. For the first eight years, the township will receive the equivalent of 5 mills from the city; and 2.5 mils each of the remaining 17 years.

Otsego Lake Township resident Jim Pagels voiced the only concern at Monday’s hearing, asking whether any study had been done regarding the economic impact a Meijer store would have on other businesses in Gaylord.

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City Manager Joe Duff responded by saying there had not been; however, the process of providing utilities to Meijer was the same as it has been for any other similar request for services.

Meijer, based in Grand Rapids, will pay the $1.266-million cost of the utilities along M-32 to the 141-acre site, and also will cover half — or $174,000 — of the cost of water main along South Townline Road. The city will pay the other half.

Meijer will also be responsible for upgrading the lift station at McVannel Road.

City Manager Joe Duff said the PA 425 agreement — aside from the city’s share in the cost of water main along South Townline Road — will not cost Gaylord residents any additional taxes. He added the installment of water main will benefit the industrial park and create a backfeed of water service into town.

Groundbreaking of the 156,000-square-foot store is expected in the spring. Plans allow for future expansion of up to 192,000-square-feet.

Meijer officials say they plan to employ between 300 and 450 workers at the store, and also may later construct a service station/convenience store on the property. Meijer officials project the total development will cost around $15 million.